CAE Inc.

CAE $12 (www.cae.com) has won a contract to build three simulators for the Royal Australian Air Force, which will use this equipment to train pilots to fly Hawk Mk-127 fighter jets. CAE did not say how much this contract is worth, but it will deliver these simulators in 2016 and 2017....

IGM FINANCIAL INC. $49 (www.igmfinancial.com) reported that it had $124.8 billion of assets under management on August 31, 2013. That’s up 6.0% from $117.7 billion a year earlier. Improving stock markets were the main reason for the rise. IGM’s fee income rises and falls with the value of the mutual funds and other securities it manages, so the company’s revenue and earnings benefit when the value of these assets increases....

CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.0 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) has won a contract from the U.S. Air Force to train pilots to operate Predator and Reaper remotely piloted aircraft (also called drones).

This five-year deal is worth $100 million U.S. That’s small next to CAE’s annual revenue of $2.1 billion (Canadian). However, this deal should help the company win more training contracts, particularly as the U.S. military uses more drones instead of costly manned fighters.

CAE is a buy....

CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 261.0 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) has won a contract from the U.S....

CANADIAN TIRE CORP., $89.56, Toronto symbol CTC.A, rose 6% this week after the company reported better-than-expected earnings. In the three months ended June 29, 2013, Canadian Tire’s earnings rose 15.9%, to $154.9 million from $133.7 million a year earlier. Earnings per share rose 17.2%, to $1.91 from $1.63, on fewer shares outstanding. That easily beat the consensus estimate of $1.80 a share. Sales rose 1.0%, to $3.02 billion from $2.99 billion. Same-store sales gained 2.0% at the company’s 490 Canadian Tire stores, thanks to strong sales of automotive and kitchen goods. Higher demand for seasonal merchandise, like bicycles and patio furniture, also contributed to the higher results....

CAE INC. $11 (Toronto symbol CAE; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 259.7 million; Market cap: $2.9 billion; Price-to-sales ratio: 1.4; Dividend yield: 1.8%; TSINetwork Rating: Average; www.cae.com) has won several new contracts with 15 countries’ defence forces. Under these deals, CAE will build helicopter flight simulators and train pilots and aircraftsupport personnel.

In all, these deals are worth $100 million, or 5% of CAE’s annual revenue of $2.1 billion.

CAE is a buy....

CANADIAN PACIFIC RAILWAY LTD., $131.73, Toronto symbol CP, continues to benefit from rising shipments of crude oil by rail. That’s because a lack of pipelines is forcing producers to find other ways to transport their oil to refineries. However, last Saturday’s derailment and explosion of a train hauling crude oil in Lac-Mégantic, Quebec, could slow down the oil-by-rail boom. (Note: a rival firm, Montreal, Maine & Atlantic Railway, operated this train, not CP.) The crash will likely lead to new regulations, such as requirements for thicker-hulled tanker cars that can better withstand collisions. Regulators may also demand that railways place more workers on their trains and install automatic braking equipment....

CANADIAN TIRE CORP. $83 (Toronto symbol CTC.A; Conservative Growth Portfolio, Consumer sector; Shares outstanding: 80.9 million; Market cap: $6.7 billion; Price-to-sales ratio: 0.6; Dividend yield: 1.7%; TSINetwork Rating: Above Average; www.canadiantire.ca) has a new four-year deal to sell Olympic-branded shoes and other sports equipment made by Adidas Group....

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ CAE INC. $10 (www.cae.com) has sold six flight simulators to airlines in Turkey and Azerbaijan. These are the company’s first simulator sales in its 2014 fiscal year, which ends March 31, 2014....

CAE INC. $10 (www.cae.com) has sold six flight simulators to airlines in Turkey and Azerbaijan. These are the company’s first simulator sales in its 2014 fiscal year, which ends March 31, 2014. Simulator orders tend to be erratic. Even so, CAE will probably sell around 35 simulators this year, unchanged from 2013....